Alphabet's Stock Sees Notable Gain

Published March 19, 2024

In a recent trading session, Alphabet Inc. (GOOGL) experienced a significant uplift, closing 4.6% higher at $147.68. The surge in stock price was accompanied by a large trading volume, with more shares being traded than usual. The company's stock has seen a moderate increase of 0.5% over the preceding four weeks.

Alphabet's Rally and Revenue Prospects

The spike in Alphabet’s share price has been partly attributed to reports of its discussion with Apple to incorporate its Gemini AI technology in powering AI features for iPhones. This prospective collaboration has generated positive sentiment among investors.

With an upcoming earnings report, Alphabet anticipates quarterly earnings of $1.49 per share, which would mark a 27.4% increase year-over-year. Additionally, projected revenues are expected at $65.95 billion, representing a 13.6% rise from the same quarter in the previous year. These numbers suggest promising growth for Alphabet.

Earnings Estimates and Stock Performance

Historical data supports the idea that there’s a strong relationship between the direction of earnings estimate revisions and short-term stock price movements. For Alphabet, the consensus estimate for earnings per share (EPS) has been adjusted upwards by 0.6% in the last 30 days. This positive revision trend is often a precursor to stock price appreciation, signaling potential for future gains in Alphabet’s stock value.

Currently holding a Zacks Rank #3 (Hold), Alphabet is part of the broader Zacks Internet - Services industry. In contrast, Uber Technologies (UBER), another player in the same sector, ended its last trading session with a slight decrease of 0.5%. Over the past month, Uber has seen a decline of 3% in its stock price. However, Uber's EPS estimates have seen an upward revision by 3.1% over the last month, with the company also enjoying an improved Zacks Rank of #2 (Buy).

Alphabet, Stocks, Earnings